Apart from economic restructuring,
China faces another challenge that is more serious: to change the way
in which it develops. This change comprises two aspects, the first is
that China must shift the way it uses energy from the high
consumption pattern to the low consumption one; the second is
remediation of the land. To start with, the huge number of polluting
industries should be suspended from operation; and from now on, big
money should be continuously allocated to gradual repair of the
severely contaminated ecosystem, so that food and water in the
country could return to their safety standards.

The obstacles that Chinese enterprises encounter when
they invest overseas result from their rent-seeking approaches being
rejected by the people under regimes similar to the Communist Party
and distrust from the people in democratic countries because of the
lack of integrity, an innate disease of Chinese enterprises and the
products they made.

In recent years, China has been
making rapid moves in overseas investments. According to the report published
by Price Waterhouse Coopers in mid-January, the total worth of assets Chinese
companies acquired in 2011 surge to 42.9 billion dollars, a twelve-percent
growth from 2010; the number of total transactions rose to a record high of 207
instances, an increase of 10% from the previous year. Judging from the data
alone, it seems that Chinese capitals are hugely popular worldwide.

China has again created a “world
miracle” in economic growth rate. In 2011, the country's total GDP
was RMB 47.1 trillion (USD 7.4 trillion), the annual GDP growth rate
was 9.2%, and its nominal growth reached as high as 17.5%.

Such a growth rate could be deemed
exponential anywhere in the world, but that didn't mean China's
economy was growing steadily and soundly. Apart from showing an
expansion in the country's economy, GDP growth did not indicate its
structural problems had been resolved.

This January 18 marked the
20th anniversary of Deng Xiaoping's tour around southern
China (Southern tour). When the younger generations talk about the
economic reform that Deng initiated, they have completely no idea
that it almost went dead at the turn of 1980s and 1990s, and came
back to life only after Deng went to the south and gave a speech in
January 1992.